Xinmai Semiconductor has submitted its listing application to the Hong Kong Stock Exchange, with Huatai International acting as sole sponsor and PwC serving as reporting accountant. Proceeds from the H股 offering are earmarked for enhancing R&D capabilities, expanding product lines, pursuing strategic investments, improving operational efficiency, and general corporate purposes.

Financial performance reveals troubling trends: Revenue steadily declined from 1.688 billion yuan in 2022 to 1.574 billion yuan in 2024, marking a 6.75% contraction. Losses deepened dramatically—net losses ballooned from 172 million yuan to 697 million yuan during the same period, accumulating nearly 1.375 billion yuan in total losses over three years. Gross margins followed this downward trajectory, sliding from 37.4% to 29.4%.

Customer concentration poses significant risks. A single major client, likely Samsung Electronics based on subsidiary Silicon Mitus Inc's historical partnerships, contributed over 60% of revenue. However, sales to this anchor client dropped 14.21% to 966 million yuan by 2024, outpacing the company's overall revenue decline. Top five clients collectively represented 77.6% of 2024 revenue.

Product diversification efforts yielded mixed results. Power management ICs—accounting for 90.7% of sales—saw revenue shrink 13.7% while margins eroded by 5.2 percentage points. Though power device sales surged 437.34% to 153 million yuan, they remained unprofitable with negative margins, lagging far behind competitors like Yangjie Technology and StarPower Semiconductor.

The CFO-auditor relationship raises independence concerns. Li Xiaolei, appointed CFO in June 2025, had been a PwC partner for 19 years until August 2024. She joined Xinmai just one month after leaving PwC—now serving as the company's reporting accountant under its Hong Kong entity name. This proximity potentially conflicts with China's auditor independence standards requiring network-wide independence assessments.

Supplier dependencies compound vulnerabilities. Top five suppliers constituted 63.7% of 2024 procurement, with two new entrants: SK Hynix System IC—where Xinmai director Huh Youm previously served as executive VP—and Hangzhou Fuxin Semiconductor, in which Xinmai holds a 16.76% stake. Both became key suppliers in 2024 following abrupt replacements of former primary vendors.

Founded in 2019 by Silergy founder Chen Wei, Xinmai accelerated growth through its 2020 acquisition of Korean firm SMI for $355 million. Valuation skyrocketed from 5 billion yuan during early funding rounds to 20 billion yuan by August 2022, though it remains frozen at this level despite three years of deteriorating fundamentals. Employee incentive platforms collectively hold 13.29% pre-IPO stakes.

Geographically, overseas markets generated 72% of 2024 revenue despite contracting sales, while Greater China sales grew modestly by 9.79%. The company warns that customer attrition, supply chain disruptions, or geopolitical tensions could severely impact operations given its concentrated exposure across clients and suppliers.